Bitcoin ‘Spiked’, Short Liquidation Seen

Bitcoin rallied over $1ooo quickly Thursday, on what some are saying is a break North after marking a double bottom.

It appears short liquidation or unwinding of short (sell) BTC trades played a big role in the price spike, according to some sources.

The cryptocurrency picked up bids at $6,766 at 07:00 GMT and move to the $7,000 mark at 11:00 GMT, a move that looks to have triggered stop losses on short trades.

And with that action, technical buyers for the digital currency may have jumped in as the move above $7,000 also marked a Northside break from the falling wedge pattern.

Notably, it took 2 hs to move from $6,766 to $7,000, the next $1,000 jump happened in just 45 mins.

The speed of the spike should not come as a surprise as wider the range and the longer the duration of the consolidation zone, the more violent a breakout usually are.

It now appears Bitcoin’s consolidation frame has ended with a Bullish breakout. Next, a move to $8,500 cannot be ruled out if the cryptocurrency closes above strong resistance at $7,510, that would confirm a double bottom breakout which is a Bullish signal.

Bitcoin is currently trading at, 7,875.5151, +952.56, or +13.76%, as of 1:42a BST, the market is open.

Caution in here as this may be a Bull trap.G-Bit are offering a 10% bonus for people buying G-Bit with Bitcoin

Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.